Anchor: China lowered its economic growth target on Tuesday warning of a "tough struggle" ahead. This comes as the U.S. and China are nearing an agreement on a trade deal. 
Kim In-kyung has more on what this could mean for the South Korean economy.  

Report: China has set its lowest growth target in nearly three decades as it faces a slowing economy amid its trade dispute with the U.S.

In a report presented to the National People's Congress on Tuesday, Premier Li Keqiang set the country’s growth at six to six-point-five percent, down from last year's target of six-point-five percent.

Economics Professor Yang Jun-sok of Seoul's Catholic University says low growth for China will translate into a setback for South Korea. 

[Sound bite: Yang Jun-sok, Catholic University]
"The slower Chinese growth rate means that they'll need less intermediate goods for their exports and for domestic consumption. Because most of the items that Korea sells China is intermediate parts, the slowdown in China's growth also means that Korea's exports will be hit substantially." 

U.S. Secretary of State Mike Pompeo said in a series of interviews with Iowa radio and television stations on Monday that the U.S. and China are “on the cusp” of a trade deal. 

However some analysts aren't sure if this is all good news for South Korea since a deal is expected to entail China buying more American products. The analysts say its conclusion could lead to a loss in exports for U.S. allies, including Korea and Japan. 

According to the Wall Street Journal on Monday, Barclays estimates that an extra one-point-35 trillion dollars in U.S. exports to China over five years could cost South Korea 23 billion dollars annually, which is about three-point-one percent of its total exports. 

Professor Yang, however, said that may not be the case as the type of goods Korea and the U.S. sell to China are usually different. 

[Sound bite: Yang Jun-sok, Catholic University]
"Even for manufacturing goods Korea tends to export perhaps less expensive items like memory chips and semiconductors, while the U.S. tends to export more high-tech goods like CPU and graphic computer chips to China."

Yang said U.S. President Donald Trump is also concentrating on agricultural goods while Korea exports virtually no agricultural goods.
Kim In-kyung, KBS World Radio News.